Fix & Flip Loans

Fast, Flexible Financing for Real Estate Investors

Fix & Flip loans are designed for real estate investors who want to purchase, renovate, and resell properties for a profit. Whether you’re an experienced investor managing multiple renovation projects or purchasing your first investment property, having the right financing can make all the difference. Jerry Ownby offers personalized Fix & Flip loan solutions that help investors move quickly when opportunities arise while providing the funding needed for both property acquisition and renovation costs. Our goal is to simplify the financing process so you can focus on transforming properties into successful investments.

What Is a Fix & Flip Loan?

A fix and flip loan is short-term financing designed for investors who plan to renovate a property and sell it for a profit. Instead of focusing on long-term homeownership, these loans are built around your project: the purchase price, the renovation scope, and the property’s expected value once the work is complete. Many programs can fund both the acquisition and a portion of the renovation costs.

How Fix & Flip Financing Typically Works

While terms vary by program, you can generally expect:

Short-Term Structure

Loan terms are designed around the renovation and resale timeline rather than a 30-year payoff.

Interest-Only Payments

Many programs keep payments lower during the project so more cash stays available for the work.

Staged Renovation Funding

Rehab funds are often released in phases as work is completed and verified, which keeps the project organized and accountable.

Deal-Based Evaluation

Lenders pay close attention to the property’s purchase price, renovation plan, and after-repair value (ARV), alongside your overall profile.

A Defined Exit Plan

Most loans are repaid by selling the property or refinancing into longer-term financing.

Benefits of Fix & Flip Financing

  • Speed: Specialized programs can move faster than traditional mortgages, helping you compete for good deals
  • Purchase and rehab funding: Reduce the amount of your own cash tied up in each project
  • Project-focused terms: Financing that matches your timeline instead of forcing a conventional structure
  • Scalability: Preserve capital so you can take on additional projects
  • Personalized support: Guidance from someone who understands investor needs

Your Deal Analysis Checklist

Strong flips start with strong numbers. Before you commit, review:

  • Purchase price: What you’ll pay for the property
  • Renovation budget: A detailed scope of work with realistic contractor quotes
  • After-repair value (ARV): Supported by comparable recent sales
  • Holding costs: Loan interest, taxes, insurance, and utilities during the project
  • Selling costs: Agent commissions, closing costs, and transfer fees
  • Timeline: How long the project realistically takes
  • Contingency: A cushion for surprises, since renovation costs rarely stay perfectly on plan

Many investors use the “70% rule” as a starting guideline, which suggests paying no more than about 70% of the ARV minus repair costs. It isn’t a law and doesn’t fit every market, but it’s a useful way to pressure-test a deal early. Jerry can help you evaluate your numbers before you make an offer.

Common Mistakes to Avoid

Underestimating Renovation Costs

Hidden issues like outdated wiring, plumbing, or structural problems can quickly expand your budget. Inspect carefully and build in a buffer.

Overestimating the ARV

Base your projected sale price on recent, truly comparable sales, not optimistic hopes.

Ignoring Holding Costs

Every extra month adds interest, taxes, and insurance. Delays can erode your profit.

Having No Backup Exit

Markets shift. Know whether you could rent the property or refinance if a sale takes longer than expected.

Planning Your Exit Strategy

A clear exit plan is just as important as a good purchase. Common options include:

  • Selling the property to a retail buyer after renovations
  • Renting it out and refinancing into long-term investor financing such as a DSCR loan
  • Refinancing into a conventional mortgage if you decide to occupy the home. Learn more about conventional loans

What Lenders Typically Review

Requirements vary, but investors should expect lenders to consider:

  • The property and renovation plan
  • Your investing experience, though some programs welcome newer investors
  • Your credit profile
  • Your cash contribution and reserves
  • Your exit strategy

Beyond the Flip: Other Investor Financing

As your business grows, you may use other tools in your strategy. Apartment loans help you acquire multifamily properties, construction loans let you build from the ground up, and a HELOC can provide flexible access to equity. Jerry can help you map out which financing fits each stage of your investing journey.

Serving Investors Across 14 States

Jerry Ownby proudly serves investors throughout Arizona, Alaska, California, Colorado, Florida, Georgia, Maryland, Montana, Ohio, Texas, Utah, Washington, South Carolina, and West Virginia.

The Fix & Flip Process, Step by Step

  1. Project consultation: Share your property, scope of work, and goals with Jerry.
  2. Deal review: Evaluate purchase price, renovation budget, and ARV.
  3. Pre-approval: Know your financing before you make offers.
  4. Documentation: Provide borrower and property information.
  5. Closing: Fund the purchase and start the project.
  6. Rehab and exit: Complete renovations, then sell or refinance.

Use the loan calculator and check today’s rates when planning long-term financing for properties you keep.

Ready to Fund Your Next Flip?

Call Jerry Ownby at 480-980-0900 or visit 459 N Gilbert Rd, Suite B100, Gilbert, AZ 85234 to discuss your project and explore your financing options.